PART I -
1. (chp 3) What will happen to the price and quantity of a Government bond if the Fed takes action to increase the DEMAND for government bonds?

2. (chp 3) What will happen to the price and quantity of Japanese goods in the US if the dollar depreciates causing the costs of producing Japanese goods to increase resulting in a decrease in the SUPPLY of Japanese goods

PART II – (Chp 2)
3. How does self-interest help achieve society’s economic goals? Why is there such a wide variety of desired goods and services in a market system? In what way are entrepreneurs and businesses at the helm of the economy but commanded by consumers?

4. Why is private property, and the protection of property rights, so critical to the success of the market system? How do property rights encourage cooperation

5. What is meant by the term :creative destruction:? How does the emergence of new iPHONES (or other new smart phones) technology relate to this idea?
- Cre

6.Decide whether each of the following descriptions most closely corresponds to being part of a command system, a restricted market system (book calls market system, or Free market system (book calls laissez-faire system).

A. A woman who wants to start a flower shop finds she cannot do so unless the central government issues her a permit to do so.

B. Shops stock and sell products their customers want but the government levies a tax on each transaction to fund schools.

C. The Collier County government bans UBER from operating in the county protecting the privately owned taxi companies from competition.

D. A student is forced to work as a factory worker by the government when they want to be an artist.

Chp 3

7. How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is do price